Credit Tips: Paying Credit Cards Early

Posted On: May 1, 2006

Author: jmichaelp
Posted: Tue Jan 10, 2006 9:47 pm
Post subject: Credit card says I paid a day EARLY & are charging me fe

Hi, earlier this year I had a lot going on & wanted to ensure that I wouldn’t be late on a particular payment when things were hectic. Although I would be giving up the grace period, I submitted a payment online just before the statement came out (8/22/05) & timed it so that it would clear my bank and pay exactly on the day the credit card statement dropped (8/23/05).

So, what I planned to have happen, actually worked - funds from my bank paid the credit card company on the exact due date. Unfortunately, the credit card company says that I date I submitted the online payment is the payment date, not the date they received money from my bank.

As far as I know, the credit card company’s bank has to present the “check” (in this case it’s electronic) to my bank before my Bank will pay it. My bank records don’t show the CC company’s bank being paid on 8/22 but on 8/23.

Although perhaps a lot of businesses allow customers to use float & everyone does so without thought or hesitation, it’s actually illegal! So, while my CC normally credits account holders when the promise to pay is made (on 8/22 in my case), they really shouldn’t & I don’t think they have a legal right to say that is when I paid them.

After I explained this to my CC company they gave me back my late fee, but started charging interest on my outstanding balance (this was about 3 months through a 1-year interest free period). After I realized this was happening, I complained & told them I wanted to settle this either legally or through arbitrage.

Thanks for any help!

Author: maddybeagle
Posted: Tue Jan 10, 2006 11:12 pm
Post subject:

Quote:
After I explained this to my CC company they gave me back my late fee, but started charging interest on my outstanding balance (this was about 3 months through a 1-year interest free period). After I realized this was happening, I complained & told them I wanted to settle this either legally or through arbitrage.

Thanks for any help!

I doubt you have snowballs chance in H***. This is why they give 0% offers, people occasionally screw up. I would just pay off the card and move on with your life. I wouldnt threaten them with ridiculous legal action because they hold the marbles. Next time, monitor your bt’s a little closer.

Author: ajulius
Posted: Tue Jan 10, 2006 11:25 pm
Post subject: Re: Credit card says I paid a day EARLY & are charging m

Im confused as to what you did. Every bank is different and schedules payments differently for bill pay.

I have tried numerous bill payment systems and only found one to my liking and they were rated the best by Keynote in their ratings.

My bill payment gives me information such as:

This payment was transmitted electronically to ABC on 01/09/2006. Funds were withdrawn from your account 123 on 01/06/2006. ABC usually applies electronic payments on the next business day. Check your pay from account statement in Online Banking if you have a question about when your funds were withdrawn.

As of 11:15PM EST, the funds showed Transaction date 01/09/2006 Post Date 01/10/2006 from the CC company which is exactly the same as the information my bank provided and EXACTLY the same day I scheduled the payment.

The payment I made was for sent on 01/06/2006 and deliver by 01/10/2006.

I did NOT pay last minute HOWEVER, had I scheduled the payment for the 10th and that was my due date, I would NOT have incurred a late fee.

With many other banks Ive used the system information is not as specific and the deliver by date was NOT when the payments were received and posted.

jmichaelp wrote:
Hi, earlier this year I had a lot going on & wanted to ensure that I wouldn’t be late on a particular payment when things were hectic. Although I would be giving up the grace period, I submitted a payment online just before the statement came out (8/22/05) & timed it so that it would clear my bank and pay exactly on the day the credit card statement dropped (8/23/05).

So, what I planned to have happen, actually worked - funds from my bank paid the credit card company on the exact due date. Unfortunately, the credit card company says that I date I submitted the online payment is the payment date, not the date they received money from my bank.

As far as I know, the credit card company’s bank has to present the “check” (in this case it’s electronic) to my bank before my Bank will pay it. My bank records don’t show the CC company’s bank being paid on 8/22 but on 8/23.

Although perhaps a lot of businesses allow customers to use float & everyone does so without thought or hesitation, it’s actually illegal! So, while my CC normally credits account holders when the promise to pay is made (on 8/22 in my case), they really shouldn’t & I don’t think they have a legal right to say that is when I paid them.

After I explained this to my CC company they gave me back my late fee, but started charging interest on my outstanding balance (this was about 3 months through a 1-year interest free period). After I realized this was happening, I complained & told them I wanted to settle this either legally or through arbitrage.

Thanks for any help!

Author: JaneiR36
Posted: Wed Jan 11, 2006 2:49 am
Post subject:

maddybeagle wrote:
I doubt you have snowballs chance in H***. This is why they give 0% offers, people occasionally screw up. I would just pay off the card and move on with your life. I wouldnt threaten them with ridiculous legal action because they hold the marbles. Next time, monitor your bt’s a little closer.

I have to agree. Please hurry up and find something else before they REALLY screw you over by adding something in your credit report visible to all prospective creditors. Heck, just check your junk mail; you probably have offers you have ignored.